Abstract
Following the oil crisis of the 1970s, countries looked to biofuels to substitute the use of fossil fuel in transportation. Brazil and the United States (US) governments impelled national programs for ethanol production (Worldwatch 2007) around 1979; meanwhile, some countries (e.g. China, Kenya, and Zimbabwe) acted in response to the oil crisis but were not able to sustain biofuel production (Liu 2005; Karekezi et al. 2004). When oil prices decreased again, the impetus for alternative fuels retreated—except in Brazil. Current drivers of the alternative energy supply include issues of energy supply security, oil price volatility, climate change, production costs, and more. Subsidy is the main policy instrument to incentivize production, although production costs are dropping.
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Appendix: Biofuels Targets and Blending Mandates
Appendix: Biofuels Targets and Blending Mandates
Country | Biofuel targets | Blending mandates |
|---|---|---|
Angola | E10 | |
Argentina | E5 and B7 | |
Australia | New South Wales: E4 and B2; Queensland: E5 | |
Belgium | E4 and B4 | |
Brazil | E18-25; B5 | |
Canada | National: E5 and B2. Provincial: E5 and B4 in British Columbia; E5 and B2 in Alberta;E7.5 and B2 in Saskatchewan; E8.5 and B2 in Manitoba; E5 in Ontario | |
Chile | E5 and B5 | |
China | E10 in nine provinces | |
Colombia | E8 | |
Costa Rica | E7 and B20 | |
Dominican Republic | E15 and B2 by 2015 | |
Ecuador | B2 by 2014 and B17 by 2024 | E5 pilot in several provinces |
Ethiopia | E5 | |
EU-27 | All EU-27 countries are required to meet 10 % of final energy consumption in the transport sector with renewables by 2020 | |
Fiji | E10 and B5 (voluntary, but mandate expected) | |
Guatemala | E5 | |
India | E5 | |
Indonesia | 10.2 % share in primary energy by 2025 | B2.5 and E3 |
Italy | 2,899 ktoe in transport by 2020 | |
Jamaica | E10 | |
Kenya | E10 in Kisumu | |
Mexico | E2 in Guadalajara (pilot) | |
Malawi | E10 | |
Malaysia | B5 | |
Mozambique | E10 in 2012–2015; E15 in 2016–2020; E20 from 2021 | |
Netherlands | 5 % in transport fuel mix by 2013; 10 % by 2020 | |
Nigeria | E10 | |
Panama | E4 in 2014, E7 in 2015, and E10 in 2016 (mandate expected in 2013) | |
Paraguay | E24 and B1 | |
Peru | B2 and E7.8 | |
Philippines | E10 and B2 | |
South Africa | E10 | |
South Korea | B2.5 | |
Sudan | E5 | |
Spain | Biodiesel 7 % of total energy in transport fuel use by 2012 and 2013; 2,313 ktoe by 2020; Ethanol/bio-ETBE 400 ktoe by 2020; Biofuels 2.7 % of final energy by 2020 | |
Sri Lanka | 20 % supply of all liquid fuels by 2020 | |
Thailand | Ethanol: 9 million liters/day by 2022; Biodiesel: 5.97 million liters/day by 2022; Advanced biofuels: 25 million liters/day by 2022 | E5 and B5 |
Turkey | E2 | |
United Kingdom | 5 % by 2014 | |
Uganda | 720,000 m3/year produced by 2012; 2.16 million m3/year produced by 2017 | |
United States | National: The Renewable Fuels Standard 2 (RFS2) requires 136 billion liters (36 billion gallons) of renewable fuel to be blended annually with transport fuel by 2022. State: E10 in Missouri and Montana; E9–10 in Florida; E10 in Hawaii; E2 and B2 in Louisiana; B4 by 2012, and B5 by 2013 (all by July 1 of the given year) in Massachusetts; E10 and B5, B10 by 2013, and E20 by 2015 in Minnesota; B5 after 1 July 2012 in New Mexico; E10 and B5 in Oregon; B2 1 year after in-state production of biodiesel reaches 40 million gallons, B5 1 year after 100 million gallons, B10 1 year after 200 million gallons, and B20 1 year after 400 million gallons in Pennsylvania; E2 and B2, increasing to B5 180 days after in-state feedstock and oil-seed crushing capacity can meet 3 % requirement in Washington | |
Uruguay | B5; E5 by 2015 | |
Vietnam | Equivalent to 1 % of domestic petroleum demand by 2015;5 % of demand by 2025 | E10 |
Zambia | E10 and B5 | |
Zimbabwe | 10 % share in liquid fuels by 2015 | E5, to be raised to E10 and E15 |
Source: REN21 (2013)
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Timilsina, G.R., Shrestha, A. (2014). An Overview of Global Markets and Policies. In: Timilsina, G., Zilberman, D. (eds) The Impacts of Biofuels on the Economy, Environment, and Poverty. Natural Resource Management and Policy, vol 41. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-0518-8_1
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